Information. about SEB and its securities services Valid from 03/01/2018. Information about SEB and its securities services, contd.

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1 Information about SEB and its securities services Valid from 03/01/2018 Information about Skandinaviska Enskilda Banken AB (publ) Skandinaviska Enskilda Banken AB (publ), company registration number , Stockholm, hereinafter referred to as SEB. Telephone: Website: (0) (Customer Centre) (switchboard) SEB is under the supervision of the Swedish Financial Supervisory Authority, Box 7821, SE Stockholm, Sweden, SEB is licensed to carry out banking operations and financial activity under the Swedish Banking and Finance Business Act (2004:297) and is also licensed to carry out pension savings activity (IPS). In addition, SEB is licensed to carry out securities business, i.e.: - Reception and transmission of orders in relation to one or more financial instruments, - Executing orders on behalf of customers, - Dealing on own account, - Portfolio management, - Investment advice, - Underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis; and - Placing of financial instruments without a firm commitment basis. Information about Skandinaviska Enskilda Banken, Denmark, branch of Skandinaviska Enskilda Banken AB (publ), Sweden. Skandinaviska Enskilda Banken, Denmark, branch of Skandinaviska Enskilda Banken AB (publ), Sweden, company registration number (CVR) , Bernstorffsgade 50, 1577 København V. Telephone: Website: SEB in Denmark is also under the supervision of the Danish Financial Supervisory Authority (in Danish: Finanstilsynet), Århusgade 110, 2100 København Ø. SEB is a part of the SEB Group. Language The language that is used in documentation and in communication between SEB and the customer is Danish. Customer classification, etc. Under the Danish Capital Market Act (in Danish: lov om kapitalmarkeder; act no. 650 of 8 July 2017) and the Danish Executive Order on Investor Protection (in Danish: bekendtgørelse om investorbeskyttelse ved værdipapirhandel; executive order no. 747 of 7 June 2017) all customers trading in securities are to be divided into three categories. The purpose of this is to adapt customer protection depending on the individual customer's situation. Private individuals and most companies are regarded as "retail" customers. In addition to retail customers there are also "professional" customers, which are large companies and similar organisations with less need for protection. The third category is what are known as "eligible counterparties", which have the least protection under the law. These include other banks, central banks and authorities. Unless you have been told otherwise by SEB, SEB has classified you as a "retail" customer, which gives you the highest level of protection. This means that SEB will provide information about financial instruments and the risks associated with these, as well as costs and other fees payable for trade involving them. When SEB offers portfolio management or investment advice, SEB will judge whether a service or instrument is suitable for the individual customer before offering the service or recommending the instrument. This judgement is made based on the customer's experience and knowledge of the service and the product, investment target and financial situation, risk tolerance and capacity to withstand losses. For types of services other than portfolio management and investment advice, SEB will judge whether the service is appropriate for the customer based on the customer's knowledge and experience. Should the customer initiate contact with SEB solely to place an order in a so-called non-complex financial instrument (e.g. listed shares and fund units in investment associations), SEB will provide the service without assessing whether the service is appropriate for the customer. Customers are entitled to apply to be classified in a different customer category. Retail customers may request in writing that they be treated as professional customers. Among other things, SEB must then assess the individual customer's experience and knowledge in regard to a particular transaction or service and ascertain that the customer can make his own investment decisions and understands the risks that may be associated with the investment. The customer then loses the higher level of customer protection. Any customer placed in a category in which a lower level of customer protection is provided may request reclassification into a category in which a higher level of customer protection applies. Advice provided by SEB SEB provides advice via advisors, brokers and managers. SEB primarily provides advice about its own products, such as funds, insurance and share index bonds offered by companies within the SEB Group, and about the financial instruments that are traded on the securities market, such as shares, bonds and derivatives. To some extent the SEB Group also provides advice on other products, such as funds from other fund management companies. Since SEB provides advice on its own products, SEB operates as a "nonindependent financial advisor". When SEB provides advice on products from other fund management companies, SEB has usually entered into a distribution agreement with the fund management company in question. In order to offer investment advice that is in the best interests of the customer, SEB reviews the customer's knowledge and experience of investing in financial instruments, financial situation and investment goals, within the framework of which SEB, together with the customer, also goes through the customer's investment aims, risk tolerance and capacity to withstand losses, in order for SEB to recommend the investments that are most suited to the customer in each individual situation (this is known as a suitability assessment). Investment advice is thus provided on the basis of the information that the customer provides about him or herself. It is therefore important that the customer contacts SEB if his or her circumstances change in such a way that any previous advice should be reviewed, since SEB only undertakes to ensure that the advice is suitable for the customer in the light of the information SEB has at that time. As a rule, SEB will not follow up to ensure that the advice provided is still suitable unless the customer and the SEB Group agree otherwise. Documentation of the advice provided and the suitability assessment will be supplied to the customer via one or more documents: the socalled written suitability explanation, which the customer can see after the advice session but before the transaction is executed. When advice is provided with the help of remote communication technology, e.g. via telephone, SEB may supply the written suitability explanation immediately after the customer has been bound by an agreement to buy or sell securities. However, this is contingent upon the customer consenting to receive the suitability explanation after the transaction has been executed, and having been given an opportunity to defer the transaction in order to first receive the suitability explanation. Restrictions to SEB's ability to perform certain services SEB's portfolio of services and products may be restricted in certain cases as a result of overseas rules and regulations, depending, for instance on where the customer resides and/or what permits SEB holds. For example, in certain circumstances, SEB is not permitted to offer advice or management services to customers residing in the USA. Restrictions of this nature may also cover fund management companies: both those within the SEB Group and external funds management companies whose funds are distributed by SEB. This means that, as a customer and unitholder, your opportunities to Skandinaviska Enskilda Banken AB (publ) 1(10)

2 continue investing in these funds may be restricted if you live overseas. More information about how SEB's ability to continue offering you its services and products may be restricted following a move overseas is available from your advisor or nearest SEB branch. In particular, we emphasise the importance of contacting SEB well before an impending move overseas in order to go through the potential consequences of this in regard to those of SEB's services and products that you use. Information regarding conflicts of interest SEB provides a comprehensive portfolio of financial services covering many different activities. On the one hand, this means that SEB can offer full financial services in all areas; on the other hand, it means there is the potential for conflicts of interest to arise. Conflicts of interest may arise between SEB, including its management, board of directors, staff, etc. and customers, or between different customers. They may also arise between different activities within SEB, and between SEB and other areas of activity within the Group. SEB has identified areas in which potential conflicts of interest may arise; examples of these include SEB's analytical, advice and corporate finance activities. SEB's Guidelines for handling conflicts of interest outline the potential conflicts of interest that have been identified and how to handle and avoid them in order to prevent the interests of customers being negatively affected. SEB has taken steps to prevent conflicts of interest from arising; for example, the various activities within the group between which conflicts of interest may arise are kept separate from each other so that improper use cannot be made of information in any other part of SEB. SEB has also adopted guidelines to ensure that the reporting process and compensation arrangements protect the independence of employees, as well as rules to prevent employees from handling matters in which the employee or a close associate has interests that could lead to a conflict of interest. Employees must always look after the interests of the customer first and foremost, as described in SEB's Guidelines for handling conflicts of interest. SEB will provide further details of these guidelines upon the request of the customer. Information about compensation and benefits SEB has guidelines for compensation and benefits, i.e. how payment or receipt of fees, commission and considerations in kind (incentives) are to be dealt with in connection with the provision of securities services. Incentives paid to or received by a third party must be designed to improve the quality of the securities service that is relevant to the customer. The arrangement must also be in line with the customer's best interests. Furthermore, incentives must not be paid or received in contravention of SEB's obligation to act honestly, fairly and professionally in its activities. Where SEB receives any regular form of compensation from a third party, SEB must be able to show that the customer is also benefited over time. When SEB provides discretionary portfolio management to a customer, SEB must transfer the compensation or benefit received from a third party to the customer. For information about how SEB handles compensation from third parties, see the price list for the relevant service. As an SEB customer, you are entitled to information about the compensation and benefits that SEB receives from or pays to third parties before the securities service is executed. The most common forms of compensation and benefits that SEB receives from or pays to third parties are described briefly below. Fund units Funds that are brokered via SEB are managed by various fund management companies. SEB receives compensation for the sale of fund units from the relevant fund management company. Such compensation is usually calculated as: - a one-off payment at the time of sale in the form of a percentage of the invested amount, - an annual payment in the form of a percentage of the managed capital, or - a combination of these options. Compensation may vary between different fund management companies and between different funds managed by the same company. SEB may also receive free training or other support from fund management companies. Funds that are managed by fund companies within the SEB Group are in some cases brokered by securities institutions other than SEB. In this situation, the institution receives distribution compensation from SEB which is calculated as above. Read more about fund distribution incentives at Structured products The structured products provided by SEB may be issued by issuers other than SEB. SEB then receives compensation for the brokerage of the structured products from the relevant issuer. Compensation can be calculated as a percentage of the invested amount, and it may vary between different issuers and between different structured products provided by the same issuer. The structured products that SEB offers are in some cases brokered by securities institutions other than SEB. SEB pays the institution commission for this. The commission is calculated as a one-off payment based on the invested amount. Premium bonds SEB is compensated by the Swedish National Debt Office for brokerage in connection with the issue of premium bonds. Compensation is calculated as a percentage of the brokered volume. The interest rate market SEB may be compensated by issuers of bonds or money market instruments when we participate in transactions on the primary or secondary markets. Such compensation is usually calculated as: - fixed compensation, - a variable part based on turnover, or - a combination of these calculation methods. Issues SEB sometimes participates in issues, listings and other corporate events. SEB receives commission for this. Such compensation is usually calculated as: - fixed compensation, - a one-off payment consisting of a percentage of the amount for which SEB's customers have subscribed for shares, or - a combination of these options. Asset management If you are a customer of an asset manager working with SEB, your account may be held with SEB. SEB and the asset manager may then have an agreement to share the brokerage fee that you pay SEB. Customer instructions SEB may also receive or provide compensation in connection with customer instructions to or from third parties. Such compensation is calculated as: - a one-off payment, - an annual payment in the form of a percentage of the managed capital, - an annual payment calculated as part of the brokerage fee, or - a combination of these options. More information If you require detailed information about the incentives that have accrued on your financial instruments, please contact your advisor or nearest SEB branch. Information about any third-party compensation received by SEB in connection with the securities services that have been provided is also included on your annual statement. You can also call us on Information about costs and fees This section contains information about costs and fees as well as how the customer pays for these. Listed shares, issue rights, rights to issues, convertibles, subscription options, options and forwards incur a transaction fee consisting of a brokerage fee. A currency exchange fee is also payable for trading in a currency other than DKK. Exchange traded certificates, warrants, mini futures and certificates incur transaction fees consisting of a brokerage fee and, where applicable, a currency exchange fee. There are also regular fees for management and/or transactions within the financial instrument, known as instrument costs. Capital-protected investments such as share index bonds, commodity bonds and foreign exchange bonds incur instrument costs included in regular fees for management and/or transactions within the financial Skandinaviska Enskilda Banken AB (publ) 2(10)

3 instrument, as well as one-off fees such as an arrangement fee. A currency exchange fee is also payable where applicable. OTC-traded certificates, warrants and certificates incur transaction fees consisting of a brokerage fee and implicit transaction costs (charges/deductions), which are included in the buy and sell price (as charges/deductions), and, where applicable, a currency exchange fee. There are also instrument costs included in regular fees for management and/or transactions within the financial instrument. OTC-traded convertibles, options, forwards, bonds and debentures incur transaction fees consisting of a brokerage fee and implicit transaction costs (charges/deductions), which are included in the buy and sell price (as charges/deductions), and, where applicable, a currency exchange fee. Exchange traded funds (ETFs) incur transaction fees consisting of a brokerage fee in regard to fund units and, where applicable, a currency exchange fee if trading is in a currency other than DKK. Instrument costs are also payable, as part of an annual fee which primarily consists of regular management fees for matters such as management, and which is charged by the fund manager, subsidiary transaction costs (included as implicit) within the fund and, where applicable, results-based fees charged for certain funds if predefined targets are achieved. Funds are also subject to regular fees charged by the fund manager and costs associated with transactions within the fund. A currency exchange fee is payable where applicable if fund units are traded in a currency other than DKK. Results-based fees may also be charged for certain funds if predefined targets are achieved. An estimate of the total cost will be provided before the investment service is executed, e.g. when placing an order, and will be expressed both as a percentage of the invested amount and as an absolute amount. A currency exchange fee may also be payable for financial instruments that are traded in a foreign currency. Costs relating to currency exchange will be estimated based on reasonable assumptions. Where appropriate, SEB has received compensation from third parties for distribution of financial instruments. Such thirdparty compensation will be reported within the framework of instrument costs, and is shown as "of which to distributor". In addition to the advance information provided about costs and fees, an annual cost summary will be provided. Please note that, in this context, a change in the price of a financial instrument caused by underlying market risk is not a cost. Transaction costs relating to brokerage fees for acquiring financial instruments are charged to the customer's account, while other transaction fees are charged to the amount invested by the customer. Instrument costs relating to financial instruments are either included in the price or deducted from the reported value of the instrument, and are charged to the amount invested by the customer. In addition to the costs mentioned above, costs and fees relating to clearing and/or redemption may be incurred. Other costs such as delivery cost, stamp duty, restitution, conversion fees, costs relating to implementation of payments and transfer costs may be incurred. Information about investor compensation SEB keeps customers' financial instruments separate from SEB's assets. Pursuant to the Investor Compensation Act (1999:158), if, in the event of SEB going bankrupt, the customer does not get back his or her financial instruments from SEB, the customer is entitled to special compensation up to a maximum of SEK 250,000. The aforesaid compensation may also include funds received by SEB for which it is accountable. Customers claiming compensation must file a claim with the Swedish National Debt Office within one year of the day of the bankruptcy decision. The Swedish National Debt Office is responsible for investigating the claim as well as for paying compensation. Individual pension savings (IPS) are not covered by investor compensation. For more information, see Information about the state deposit guarantee Fund account Fund unit holdings are not covered by the Swedish government's deposit guarantee. The investor compensation applies if the fund units are managerregistered; see also above for information on investor compensation. IPS The balance on the account is not covered by the Swedish government's deposit guarantee. Custody and securities (VP)/service accounts The securities holdings are not covered by the Swedish government's deposit guarantee. See the above information about investor compensation instead. Investment savings account The liquid funds on the account are covered by the Swedish government's deposit guarantee pursuant to a decision by the Swedish National Debt Office. All customers entitled to compensation under the Swedish Investor Protection Act (1995:1571) are guaranteed compensation for all funds in their SEB account, up to a maximum of SEK 950,000. The Swedish National Debt Office pays the compensation within 7 working days after the date on which SEB goes bankrupt or on which the Swedish Financial Supervisory Authority decides that the guarantee should be invoked. The securities holdings are not covered by the Swedish government's deposit guarantee; see the above information on investor compensation instead. For further information, see Further cover under the Danish depositor and investor guarantee scheme As the Danish depositor and investor guarantee scheme offers a wider protection of customer's deposits and investments held by SEB, SEB has joined the Danish depositor and investor guarantee scheme. Consequently, customers will be entitled to the following coverage as a supplement to the above cover under the Swedish scheme: Investor compensation Pursuant to the Danish Act on a Depositor and Investor Guarantee Scheme (in Danish: bekendtgørelse af lov om en indskyder- og investorgarantiordning; Executive Order no. 917 of 8 July 2015) if, in the event of SEB going bankrupt, the customer does not get back his or her financial instruments from SEB, the customer is entitled to special compensation up to a maximum of 20,000 EUR to the extent the customer's investment is not covered by the scope of the Swedish investor compensation scheme. Deposit guarantee Pursuant to the Danish Act on a Depositor and Investor Guarantee Scheme (in Danish: bekendtgørelse af lov om en indskyder- og investorgarantiordning; Executive Order no. 917 of 8 July 2015) in the event of SEB going bankrupt, customer's deposits up to EUR 100,000 will be covered to the extend such deposits are not covered by the scope of the Swedish depositor's guarantee scheme. Pension The balance and securities held on pension accounts is covered by the Danish deposit guarantee, provided that the balance is held on a segregated deposit account. For further information, see Information according to the Danish Consumer Agreements Act (in Danish: lov om forbrugeraftaler; act no of 17 December 2013) The Danish Consumer Agreement Act contains rules on agreements concerning financial services and financial instruments which are concluded between the consumer and trader remotely. A distance contract is a contract entered into without SEB and customer physically meeting, such as via the Internet or over the telephone or by replying to an advertisement/mailing. With a distance contract, the consumer is entitled to receive certain information, beyond that stated in the general conditions above, regarding conditions for the contract before it is entered into. Information about Skandinaviska Enskilda Banken: see above. Recording of calls, etc. The customer is aware that SEB may record and keep telephone calls and other electronic communication in connection with the customer instructing SEB on trading in financial instruments. Calls may also be recorded and kept in case of other communications with the customer. Copies of recorded calls and stored electronic communication with the customer are available on request for a period of five years. The customer is entitled to receive the recorded calls and stored electronic communication upon request, and SEB is entitled to charge a reasonable fee for this. Information about SEB's services and products Skandinaviska Enskilda Banken AB (publ) 3(10)

4 Information about SEB's services and products is available at Error! Hyperlink reference not valid.trading in securities is carried out at a branch or via telephone. Via online banking, customers can trade in Nordic shares, warrants, bonds, convertibles and share index bonds. Customers can also subscribe for new share index bonds, shares and premium bonds. Information about prices, taxes and fees Prices for SEB's services are in accordance with SEB's currently applicable price list. The current price list is available at In addition, further taxes, fees and costs may be added that are neither imposed on nor paid by SEB. Risk Trading in financial instruments always involves exposure to risk. Money invested by the customer may rise or fall in value, and there is no guarantee that the customer will get back the invested capital. For more detailed information about these particular risks, please see the section below named "Information about the nature and risks of financial instruments". Right of reversal and termination of the agreement If a distance contract has been entered into, the consumer has a right of reversal and can withdraw from the contract within 14 days starting from the day the contract was entered into. However, the reversal deadline for distance contracts entered into for individual pension saving (IPS) is 30 days. This right of reversal only applies to the initial contract and not to individual contracts entered into or services provided within the framework of this contract. Moreover, the right of reversal does not apply to individual contracts, services, withdrawals, purchases, payments, transactions, transfers, etc. carried out by SEB at the consumer's request before the right of reversal was exercised. If the consumer exercises the right of reversal, SEB is entitled to receive payment for the agreed service for the period of time when the consumer used the service. If a consumer wishes to exercise the right of reversal, the consumer must inform SEB. For other terms and conditions regarding early or unilateral termination of the agreement, refer to the general terms and conditions of the agreement. Disputes and complaints If a customer is dissatisfied with any of SEB's services, it is important that the customer communicates this to SEB. In the first instance, contact the person or department at SEB that provided the service or carried out the work, either by phone on or at the address given above. If the customer is not satisfied with the reply, he or she may contact the person at SEB responsible for complaints, see If the customer wishes to discuss the case with an independent party, the Danish Consumer Ombudsman (in Danish: forbrugerombudsmanden) may be contacted, see Deposit guarantee and investor compensation: see above. Information about the nature and risks of financial instruments 1. Trading in financial instruments Financial instruments, i.e. items such as shares in limited companies and equivalent participation rights in other types of companies, bonds, deposit certificates, fund units, money market instruments, financial derivative instruments or other such securities that may be subject to trading on the capital market, are primarily traded in organised format via a trading venue. Trading takes place through the securities companies that participate in trading at the trading venue. As a customer, you must usually contact a securities company of this type in order to buy or sell financial instruments. 1.1 Trading venues and systematic internalisers "Trading venues" refers to regulated markets and the two types of trading facilities: multilateral trading facility (MTF) and organised trading facility (OTF). Customer trading can also be performed via a securities company acting as a systemic internaliser (SI), or otherwise by trading against the securities company's own stock or another customer. Various types of financial instruments are traded on a regulated market. In terms of shares, only shares in public companies can be listed and traded on a regulated market, and there are stringent requirements for such companies, including in regard to the company's size, activity history, spread of ownership and public accounting for the company's finances and activities. An MTF can be described as a trading system which is organised and provided by a stock exchange or a securities company. Lower requirements in terms of, say, provision of information and activity history are typically set for financial instruments traded on a trading platform compared with financial instruments traded in a regulated market. An OTF is similar to an MTF in many ways. But only financial instruments that are not shares or share-related securities, such as bonds and derivatives, may be traded on an OTF. The OTF may also have more relaxed rules for trading including matching orders than those for regulated markets and MTFs. A systematic internaliser (SI) is a securities company which, on an organised, frequent and systematic basis, deals on own account by executing customer orders outside a regulated market or a trading platform. A systemic internaliser is obliged to publish market-related offers, i.e. for buy and sell prices, for liquid financial instruments traded on a trading platform and for which the systemic internaliser carries out systemic internal trading. Trading can also take place through a securities company without it being a systemic internaliser, by executing a customers order against the institution s own account or against orders from other customers of the institution. There is currently one regulated market in Denmark: NASDAQ OMX Copenhagen A/S (hereinafter referred to as the Copenhagen Stock Exchange). Organised trading also takes place in other trading venues, such as First North and Nordic MTF (both MTFs). For more information about where your particular securities company executes your orders, see the relevant policy for best execution. Trading on regulated markets, trading venues and other venues creates a second-hand market for financial instruments that a company has already issued. If the second-hand market works well, i.e. it is easy to find buyers and sellers, and offer prices from buyers and sellers are continuously listed, as well as closing prices (settled prices) from completed transactions, companies also have the advantage that it is easier to issue new instruments as necessary, thereby injecting more capital into the company's activities. The firsthand, or primary market, is the market in which newly issued instruments are bought or subscribed for. 1.2 Trading/quotation lists Trading venues usually divide shares into different lists, which are published in various places such as on the trading venue website, in daily papers and in other media. Factors that determine the list on which a company's shares are traded may be the company's stock exchange value (e.g. the Copenhagen Stock Exchange's Large, Mid and Small caps). The most frequently traded shares may also appear on a separate list. Certain securities companies also publish their own lists of financial instruments that are traded via the institution, rates at which instruments are traded, etc., via their website. Shares on lists with stringent requirements and high turnover are generally regarded as lower risk than shares on other lists. Information about rates, etc. regarding shares and other types of financial instruments such as fund units, options and bonds, are also regularly published in venues such as trading venue websites, daily papers and other media. 2. Risks associated with financial instruments and trading in financial instruments 2.1 General information about risks Financial instruments can produce a return in the form of a dividend (shares and funds) or interest (interest-bearing instruments). The price (the rate) of the instruments may also rise or fall relative to the price at the time of investment. In the following description, the word "investment" includes negative positions (negative holdings) which are assumed for the instrument; cf. for example the information about short selling in section 8, below. The overall return is the total of the dividend/interest and change in price for the instrument. Obviously, investors are looking for a positive overall return, i.e. one which produces a profit ideally as high a profit as possible. But there is also a risk that the overall return will be negative: in other words, Skandinaviska Enskilda Banken AB (publ) 4(10)

5 the investment makes a loss. The risk of losses varies depending on the instrument. The potential for profit on an investment in a financial instrument is generally linked to the risk of making a loss. The longer the investment is held, the greater the potential for profit or risk of loss. In the context of investment, the word "risk" is sometimes used to express both risk of loss and potential for profit. In the following description, however, the word "risk" is used solely to denote risk of loss. There are various ways of investing that reduce risk. In general, it is better not to invest in one financial instrument or just a few instruments, but instead to invest in several different financial instruments. These instruments should then help to spread the risks, rather than concentrating them so that they can all be triggered simultaneously. Spreading investments in foreign markets also generally reduces the overall portfolio risk, although trading in foreign financial instruments does incur currency risk. Investments in financial instruments are associated with financial risk, which will be described in more detail in this information. The customer is responsible for risk, and so must personally read and learn about the conditions that apply to trading in such instruments in the form of general terms and conditions, fact sheets, prospectuses and so on, and about the nature of and risks associated with the instruments, via their appointed securities company or through their representative asset manager. The customer must also regularly monitor his or her investments in such instruments. This applies even if the customer received investment advice at the time of investment. The customer should be prepared to take action quickly if this turns out to be necessary to protect his or her interests, for example, by liquidating investments that are moving in a negative direction, or by pledging additional security for investments financed by loans for which the security value has fallen. It is also important to bear in mind the risk that trading in financial instruments via a trading venue other than a regulated market may involve, since requirements for these are generally less strict. 2.2 Types of risk, etc. A range of risk types and other factors should be taken into account and weighed up in connection with the risk assessment that should be performed both when you make an investment in financial instruments and continuously during the investment period. Some of the most common types of risk are described in brief below. Market risk the risk that the entire market or parts thereof in which your investment is invested, such as the share market, will go down. Credit risk the risk that a party such as an issuer or counterparty will be unable to pay. Price volatility risk the risk that major fluctuations in the price of a financial instrument will negatively affect the investment. Price risk the risk that the price of a financial instrument will go down. Tax risk the risk that taxation rules and/or tax rates are unclear or will change. Currency/exchange rate risk the risk that a foreign currency to which a holding relates (e.g. fund units in a fund invested in American securities listed in USD) will be weakened. Leverage risk the structure of a derivative instrument that means there is a risk that the price of the underlying asset will have a substantial negative impact on the price of the derivative instrument. Legal risk the risk that relevant laws and regulations are unclear or will change. Company-specific risk the risk that a particular company does less well than expected or is affected by a negative event, and the financial instruments linked to the company will thus fall in value. Industry-specific risk the risk that a particular industry does less well than expected or is affected by a negative event, and the financial instruments linked to companies in the industry will thus fall in value. Liquidity risk the risk that you will be unable to sell or buy a financial instrument at a time when you wish to. Interest rate risk the risk that the financial instrument you have invested in goes down in value due to changes in the market interest rate. 3. Shares and share-related instruments 3.1 General information about shares Shares and limited companies Shares in a limited company entitle the owner to a share in the company's equity. If the company makes a profit, it generally issues a dividend on the shares. Shares also entitle holders to voting rights at the general meeting of shareholders, the highest decision-making body in the company. The more shares the investor owns, the greater his or her share in the capital, dividend and votes. Voting rights may vary depending on the class to which the shares belong. Companies may be either public or private. Only the shares of public companies may be traded via a trading venue Share price The price of a share is directly affected by offers or demand for the relevant share, which, at least in the long term, is in turn guided by the company's future outlook. The value of a share goes up and down primarily due to the investors' analyses and judgement of the company's potential for future profit. Future developments in the world at large in regard to economic trends, technology, legislation, competition, etc. determine demand for the company's products or services, and are therefore crucial to the change in the company's share price. The current interest situation also plays a substantial role in pricing. If market interest rates go up, interest-bearing financial instruments that are issued at the same time (new issues) produce a better return. The price of shares that are regularly traded then normally goes down, as does that of interest-bearing instruments of already in circulation. This is because the increased return on the newly issued interest-bearing instruments will be better in relative terms than the return on shares or interest-bearing instruments already in circulation. Share prices are also negatively affected if the interest on the company's debts increases as market interest rates go up, thus reducing the company's potential for profit. Other conditions directly associated with the company, such as changes to the company's management and organisation, production problems, etc. can also negatively affect the company. In the worst case scenario, limited companies may do so poorly that they go bankrupt. The share capital, i.e. the capital paid in by shareholders, is the capital that is used first to pay the company's debts. This generally results in the company's shares becoming worthless. The prices on certain major foreign regulated markets or trading venues also affect prices in Denmark, partly because many Danish limited companies are also listed with foreign trading venues and prices are aligned between the trading venues. The share prices of companies in the same industrial sector are often affected by changes in the share price of other companies within the same sector. This can also apply to companies in other countries. Market players have different needs when it comes to investing cash (liquid assets) or obtaining liquid assets. They also frequently have differing opinions on how prices should perform. These conditions, which also include how the company is valued, contribute to the fact that there are both buyers and sellers. If, on the other hand, investors are in accord in their perceptions of price developments, they will either buy, triggering buying pressure from lots of buyers, or sell, thus triggering selling pressure from lots of sellers. The price goes up when there is buying pressure, and down with selling pressure. The turnover, i.e. the number of a particular share that are bought and sold, also affect the share price. A high turnover reduces the difference (also known as the spread) between the price buyers are prepared to pay (the buy rate) and the price sellers demand (the sell rate). A share with a high turnover, in which large amounts can be turned over without having a significant impact on the price, has good liquidity and is therefore easy to buy and sell. Companies listed on regulated markets often have higher liquidity. Different shares may demonstrate different volatility in prices during the course of a day or a longer period, i.e. increases and decreases as well as the proportionate price changes. The prices at which shares have been traded (settled rates), e.g. the highest/lowest/most recently paid that day, last listed buy and sell rates, and further information on traded volume in DKK are published in most major daily newspapers and on various websites maintained by trading venues, securities companies and media companies. These price details may vary in terms of how up-to-date they are depending on the publishing medium Share classes Shares come in different classes, primarily A and B shares, generally having to do with voting rights. A shares generally entitle the holder to Skandinaviska Enskilda Banken AB (publ) 5(10)

6 one vote, while B shares entitle the holder a restricted voting right, generally a tenth of a vote. Voting rights differ partly because, in the spread of ownership, there is a need to protect the influence of the original founders or owners of the company by giving them stronger voting rights. When new shares are issued, these have a lower voting value than the original A class, and are designated as B, C or D shares Quota value, split and consolidation of shares A share's quota value is the proportion of the company's share capital that each share represents. It is obtained by dividing the share capital by the total number of shares. Companies sometimes change the quota value because the price (the market rate of the share) has risen sharply, for example. Dividing each share into two or more shares via what is known as a split reduces the quota value and lowers the price of the shares. However, the shareholder's capital is unchanged after a split, but it is divided into more shares which have a lower quota value and a lower price per share. On the other hand, a share consolidation (reverse split) can be performed if the price has fallen substantially. This merges two or more shares into one share. The shareholder has the same capital after consolidation, but it is divided into fewer shares which have a higher quota value and a higher price per share Market introduction, privatisation and buyouts Market introduction means that shares in a company are introduced to the share market, i.e. listed for trading on a regulated market or MTF. The public is then invited to subscribe for (buy) shares in the company. In general this is an existing company that has not previously been traded on a regulated market or other trading venue, whose owners have decided to expand the circle of owners and facilitate trading in the company's shares. If a government-owned company is introduced to the market, this is known as privatisation. As a rule, buyouts take place when one or more investors invite the shareholders of a company to sell their shares on certain terms. If the buyer obtains 90% or more of the shares in the relevant company, the buyer may impose compulsory redemption of the remaining shares on the shareholders who did not accept the buyout offer. These shareholders are then forced to sell their shares to the buyer against compensation that is set via arbitration Issues If a limited company wishes to expand its activities, additional share capital is often required. The company obtains this by issuing new shares. Existing shareholders generally get subscription rights giving them priority to shares in a new issue. The number of shares that may be bought is generally proportionate to the shareholder's existing number of shares. The subscriber must pay a certain price (issue rate), generally lower than the market rate, for the newly issued shares. Immediately after the subscription rights which generally have a specific market value have been separated from the shares, the price of the shares generally drops, while the number of shares rises for those shareholders who subscribed. Shareholders who do not subscribe may sell their subscription rights during the subscription period, which usually lasts for several weeks, on the trading venue where the shares are traded. After the subscription period, the subscription rights lapse, thus becoming unusable and worthless. Limited companies can also carry out what are known as a directed share issue, in which shares are issued and directed only at a particular set of investors. Via what is known as a non-cash consideration, limited companies can also issue new shares in order to acquire other companies, businesses or assets in a form other than cash. With both directed share issues and non-cash considerations, the existing shareholders' proportion of the number of votes and share capital in the company is diluted, but the number of shares owned and the market value of the invested capital are not normally affected. If the assets or reserved funds in a limited company have substantially increased in value, the company may transfer part of this value to its share capital via what is known as a bonus issue. In bonus issues, the number of shares which each shareholder already has is taken into account. The number of new shares that accrue via the bonus issue are proportionate to the shareholder's existing number of shares. Through the bonus issue, the shareholder receives additional shares, but the shareholder's proportion of the company's increased share capital is unchanged. The price of the shares goes down with a bonus issue, but thanks to the increase in the number of shares, the market value of the shareholder's invested capital remains unchanged. Another way of executing a bonus issue is for the company to write up the quota value of the shares. After revaluation, the shareholder's number of shares is unchanged and the market value of the shareholder's invested capital remains unchanged. 3.2 General information about share-related instruments Instruments that are closely linked to shares are share index bonds, deposit certificates, convertibles, share options and equity index options, share and equity index forwards, warrants and leverage certificates Index bonds/share index bonds Index bonds/share index bonds are bonds for which the return is dependent, not on interest, but on a share index. If the index performs positively, the return follows suit. If the index performs negatively, the return may not materialise. However, the bond's nominal amount, which may be lower than the invested amount, is always repaid on the maturity date, meaning there is less risk of loss than there is for shares and fund units. The risk associated with an investment in a share index bond, in addition to any premium and costs paid, can be defined as the alternative return, i.e. the return that the investor would have obtained on the invested amount if invested elsewhere. Index bonds may have various names, such as share index bonds, SPAX, share bonds, credit basket bonds, interest rate basket bonds, currency bonds, etc., depending on the underlying asset that determines the return on the bond. Index bonds are often designated as capital-protected products. As outlined above, this term indicates that, regardless of whether or not the product produces a return, the nominal amount is repaid. This is usually the invested amount minus any premium paid. NB: Capital protection does not apply if the issuer goes bankrupt or becomes the subject of corporate restructuring with public settlement (reduction of receivables) Depository receipt A Danish depository receiptis a certificate demonstrating the right to foreign shares, which the certificate issuer is keeping/holding on behalf of the holder. Deposit certificates are traded exactly like shares on a regulated market or trading venue, and the price performance generally tracks the price performance on the foreign trading venue where the share is traded. As well as the general risks associated with trading shares or other types of participation rights, currency risk should be taken into account Convertibles Convertibles (convertible loans or convertibles) are interest-bearing securities (loans to the issuer of the convertible) which may be exchanged for shares during a specific time frame. The return on the convertibles, known as the coupon rate is usually higher than the dividend on dividend shares. The convertible rate is expressed as a percentage of the nominal value of the convertible Reverse convertibles Reverse convertibles are hybrid products that are somewhere between an interest rate investment and a share investment. The reverse convertible is linked to one or more underlying shares or an index. This investment produces interest, i.e. a fixed, guaranteed return. If the underlying shares or index perform positively, the invested amount plus the fixed return is repaid. If the underlying shares or index fall, on the other hand, there is a risk that, instead of the invested amount, the investor will receive one or more shares that are included in the reverse convertible or equivalent cash payment in addition to the predetermined return Share options/equity index options There are various types of share options. Call options entitle the holder to buy previously issued shares at a predetermined price within a particular time frame. Put options, on the other hand, entitle the holder to sell shares at a predetermined price within a particular time frame. Each call option has a corresponding issued option. Unless risk restriction measures are taken, the risk for the option buyer is that it will fall in value or be worthless on the closing day. In the latter case, the premium paid to acquire the option is fully used up. In certain situations, the risk run by the issuer of an option may be unrestricted in size unless risk restriction measures are taken. The price of options is affected by the price of the corresponding underlying shares or index, but generally fluctuates more and affects the price more strongly than is the case with the shares or index. Most trading in share options takes place on regulated markets. Trading in equity index options also takes place in these venues. These index options produce profit or loss directly in cash (cash settlement) based on the change in the underlying index. See also section 5 on derivatives Equity forwards, equity index forwards and futures A forward is a mutually binding contract between the parties to buy or sell the underlying asset at a previously agreed price, with delivery or other consideration, such as cash settlement, at a time specified in the contract (closing day). No premium is paid, since the parties have mutual liability under the contract. Skandinaviska Enskilda Banken AB (publ) 6(10)